Market making


One of the primary dealers' most important tasks is to ensure efficient market making in Danish government securities. This implies that primary dealers have committed to quote current bid-ask prices on one or more platforms within the framework agreed upon in cooperation between Government Debt Management and the primary dealer group.

Ongoing price quotation on electronic trading platforms enables market participants to monitor market developments and conduct transactions at prices and volumes known in advance. This pre-trade information fosters transparency and supports efficient price formation in the market for government securities. It increases investor interest in government securities and provides the bases for reduction of the central government's financing costs.

Before a trading platform can be approved to  market making they have to meet some minimum requirements. The central-government's primary dealers are able to perform their market making obligations on MTS Denmark.

Trading platforms

Danish government securities are traded on several electronic trading platforms, some of which are targeted at trading between dealers and others at trading between dealers and investors. In addition, a large share of turnover takes place in the over-the-counter market.

Danish government securities are primarily traded on the following trading platforms: Danish government securities are primarily traded on the following trading platforms:

  • Interdealer trading platforms:
    • MTS Denmark
    • ICAP/BrokerTec
    • Nasdaq OMX Copenhagen
  • Electronic trading platforms targeted at investors:
    • Bloomberg
    • BondVision
    • TradeWeb